LINK token price analysis: LINK token price is in a downtrend, what will happen next?

• LINK token price is in a strong downtrend on the daily time frame, and currently, it is trading at $17.00.
• The token is a forming falling wedge bullish chart pattern on a daily time frame.
• The pair of LINK/BTC is trading at 0.0003611 with an increase of 0.84% in the market cap of the digital asset over the past 24 hours.

LINK token price is in a downtrend daily and faces continuous rejection of the green trendline, acting as a long-term supply zone.LINK token price is trading along the Supply zone of $2.9 on a daily time frame. The token forms lower low and lower high formation on a daily time frame. At present, the token is resting at a long-term demand zone on the weekly time frame, and thus if it can break out of the green trendline on the upside, the token can be seen moving upside. But if the token breaks the demand zone, it can fall rapidly. Currently, the token is trading below all the crucial Exponential Moving Average (20, 50, 100) and could face rejection moving upwards.

LINK token price has been trading in a small range from past trading weeks, and thus breakout on either side will trigger the big move. The token is currently trading in the middle of the Bollinger band indicator. The Bollinger band’s range has become narrow, indicating an impulsive move in the upcoming trading days. Volumes have decreased, and thus momentum on any side will continue for a long time due to less volatility.

RSI and ADX are showing bullish signs on the daily time frame

LINK token price is in a downtrend on a larger time frame, and recently it formed a chart pattern. Once the token breaks out of the pattern, it could trigger a massive move on the breakout side.

Average Directional Movement Index: ADX has been continuously dipping over the past trading days, and recently, it slipped below 20, as the token faced rejection at $15.33. The ADX curve is seen recovering, and it has turned upwards at present. Thus indicating a halt in the movement of the price and possible change in the structure of the price movement.

Relative Strength Indicator: RSI is trading at 63 as the token forms a bullish reversal pattern. The RSI curve has crossed the 50 halfway mark, and thus, the token can be seen moving up, as it gave a breakout of the falling wedge pattern. The RSI curve has also gone past the 20 SMA, indicating bearish momentum for the upcoming trading days.

LINK token price is forming a falling wedge pattern on the daily time frame

LINK token price was falling from the past trading days, forming lower lows. But recently, the token managed to stay above the previous low despite the selling pressure of the supply zone. As a result, it started trading in a smaller range which led to a falling wedge pattern on a daily time frame.

Moving Average Convergence Divergence (Bullish): MACD indicates a bullish trend on the daily time frame as it gave a positive crossover. The buyer’s (blue) signal line crossed the seller’s (orange) upside. If the token breaks out of the green trendline, it can reach $19.22 and above. It is possibly making new highs if the momentum continues.

Supertrend: Recent bullishness in the cryptocurrency market has affected the super trend indicator. The buy signal from the indicator is still intact as it broke down the supertrend sell line with a strong bullish candlestick pattern. If the coin price breaks out of the green supertrend indicator line, the indicator can be seen giving a sell signal. Until then, an investor should remain cautious, looking for short opportunities.

Conclusion 

As per the price action, the LINK token price is forming a falling wedge bullish chart pattern. The technical parameters are also suggesting bullish momentum for the upcoming trading days. The investor should be cautious until the token breaks out on either side. It remains to see if the token breaks on the upside or bears trample the price down.

SUPPORT: $15.0 and $16.00

RESISTANCE: $19.7 and $20.9

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

SUPPORT: $2.0 and $2.23

RESISTANCE: $3.7 and $2.9

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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